PRI avoides costs of voting for higher taxes, gets benefit

The Senate passed the major revenue measures previously voted by the Chamber of Deputies, including a 1% increase in the value added tax. The key vote was 53-28, with 7 abstentions. The PAN, PVEM, and one PANAL senator voted in favor; the PRD, PT, and Convergencia voted against. Most of the PRI senators left the Senate chamber prior to the vote and the seven who remained abstained, based on an agreement with the PAN. Commentators noted that the major beneficiaries of the VAT increase will be the state governors (mostly PRIistas), who will get one-third of the additional tax take. A summary of the tax measures can be found here. Government Secretary Fernando Gómez Mont applauded the vote: “The agreements reached signify patriotic conduct by the actors; the federal government wants to recognize the will of the parties in putting the national interest ahead of politics.” (Universal 11/2)